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New Management Research Analyzes How Recognition Affects Retention

Recognition is one of those persistent management puzzles. It's easy to provide yet frequently neglected, often with negative consequences for employees, management and entire organizations. Now, some helpful new research further explores this situation, examining, among other things, how recognition affects retention.

The study, "The Effects of Employee Recognition and Appreciation," was conducted by TINYpulse, an employee engagement and research firm, and involved surveys with over 4,500 employees in some 500 organizations. Their main conclusions? Retention is tied to recognition - yet a significant majority of employees (79%) "don't feel strongly valued for the work they put in."

Let's review some of the key findings in more detail.

The recognition/retention connection - Despite the fact that recognition is chronically in short supply, it plays an important role in keeping employees satisfied and productive. The survey report states, "We found a strong relationship (r = 0.56) between how valued an employee feels at work and the likelihood that they would reapply to their job." In other words, the data showed a solid correlation between employees' feeling valued and their overall feelings about their job situation. Not surprising, but it's always useful to put quantitative data behind qualitative scenarios.

Feeling appreciated improves employee relationships - The survey results emphasized the importance of peer relationships in the workplace. As the report noted, "Employees want to recognize their peers. When someone feels valued, they're more likely to rate their colleague with a higher score." 70% of employees felt their peers were the most important factor in creating "an engaging environment." In contrast, official perks "such as work functions, parties, or amenities" received only an 8% score. The bottom line is that goodwill is contagious; appropriately high levels of management recognition can have a positive ripple effect.

The core importance of the manager - employee relationship - These survey results add to the vast body of research confirming the fundamental importance of the relationship between direct manager and employee. Employees want to work for managers who recognize their contributions. "Our research validated that point," the report noted. "There’s a relationship between how valued an employee feels and how highly they would rate their direct supervisor (r = 0.35)." And naturally, feelings about one's manager influence one's attitude to the job and likelihood to remain in it.

Overall, these recognition-related findings were entirely consistent with my own management experience. As I've explained before in this space, during nearly a quarter century in management I was involved in a multitude of employee surveys, and the one issue that recurred in literally every single one of them was employee recognition. Employees never got enough of it – invariably it was a pain point.

This current survey report also included a broad, macro-level observation. "When you take into consideration the high cost of turnover and an increasingly improving job market, these findings ought to get you thinking about your own recognition strategies. How can you expect employees to stay at your organization if they're not getting the appreciation they deserve?"

It's an entirely fair, commonsense question.

It's also one that in many organizations doesn't receive a clear answer.

Nearly a quarter century of Fortune 500 management experience. Long interested as practitioner in the subject of management, both good and bad, effective and ineffective,…

Nearly a quarter century of Fortune 500 management experience. Long interested as practitioner in the subject of management, both good and bad, effective and ineffective, what works and what doesn't. My book is "The Type B Manager" and my online Udemy courses are "The Manager's Mindset" and "How to Manage Difficult Employees." Graduated from Harvard College, with MBA from Western New England University. My work has appeared in Harvard Business Review and I contribute regularly to Psychology Today. Founder and principal of Howling Wolf Management Training, LLC.